Bayberry Capital, a private investment firm that invests in digital assets, has released an analysis explaining why the market still undervalues XRP.
The firm says traders and analysts have long judged XRP using the wrong metrics, treating it like a speculative token instead of key financial infrastructure.
“The Market Looks at XRP Through the Wrong Lens”
Bayberry noted that the market still views XRP as any other cryptocurrency, focusing on volatility, news, and short-term sentiment, while overlooking the underlying system.
It argues that unlike typical tokens, XRP was built to move value quickly and reliably across global financial networks. Because the market hasn’t recognized this yet, its price doesn’t reflect its real purpose.
Infrastructure Assets Are Mispriced Early in Their Lifecycle
Furthermore, Bayberry argues that XRP’s mispricing follows a pattern seen throughout financial history where early infrastructure often gets overlooked. The firm compares today’s dynamic to the early internet, where routers and networking companies traded quietly while attention flooded into speculative dot-com names.
According to Bayberry, XRP sits in the same position. The market sees a flat chart and assumes irrelevance, while in reality, the architecture for global liquidity is developing beneath the surface, as evident in Ripple’s streak of acquisitions.
Institutions, Not Traders, Understand XRP’s Utility
Meanwhile, Bayberry highlights that XRP’s role as a bridge asset requires regulatory clarity, institutional processes, and deep technical integration, and these processes could take time. Retail traders, by contrast, often react to narrative cycles and price swings.
This creates a gap between how XRP is perceived and how it actually functions. Bayberry suggests that the longer this misunderstanding continues, the greater the “eventual” price revaluation could be once XRP’s real-world utility becomes clear.
Utility Adoption Moves Quietly, Not Emotionally
The firm also notes that liquidity infrastructure does not behave like emotional retail markets. True adoption compounds quietly, and once the system reaches a critical threshold, demand often exceeds available supply.
In Bayberry’s view, XRP’s current price is not a sign of weakness but of an asset progressing through an infrastructure-building phase.
Supply Concerns Miss the Real Mechanics
Bayberry also addresses a common criticism about XRP’s 100 billion supply. It argues that only the liquid float that’s available for settlement matters, not the headline number. Indeed, a significant portion of XRP remains in escrow or long-term custodians.
As transactional demand grows, available liquidity tightens, which could lead to price discovery once the utility reaches scale.
Regulatory Clarity Has Not Yet Been Priced In
Notably, XRP now operates with a distinct legal advantage following its regulatory resolution in the U.S. Despite this, Bayberry says the market continues to trade XRP as if regulatory uncertainty still exists.
It argues that this disconnect creates a big opportunity. XRP is a fully compliant financial asset, but the market still values it like a risky, unregulated one.
Tokenization Will Make Bridge Liquidity Essential
Bayberry predicts a surge in tokenized value from bonds to commodities as global finance transitions to on-chain.
These systems will need a neutral asset to move liquidity between networks. XRP, built precisely for this role, could see structural demand as tokenization expands. This demand will not be speculative but functional, according to the firm.
Perspective Determines Valuation
Interestingly, the firm argues that XRP’s market cap looks large only when compared to other crypto assets. When viewed against global settlement volumes or projected tokenized markets, it is “insignificant.”
Essentially, Bayberry emphasizes that XRP remains mispriced because the market treats it as a trade instead of a system. According to the firm, its value will eventually reflect its role in global financial plumbing, not because of hype, but because settlement infrastructure becomes essential.
Bayberry concludes that value in financial architecture accrues over long periods and becomes visible only when the system reaches widespread deployment.
At that point, the market won’t be discovering something new. It will simply recognize what has been developing quietly all along for XRP.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
